Free Sample Debt Settlement Letter; How to Successfully Negotiate Your Debt Instead of Filing for Bankruptcy

  • The following free sample debt settlement letter will come in handy for those of you who find yourself struggling to make ends meet. Most people do not want to file for bankruptcy and totally ruin their credit. A better way is to settle your debts with the creditors and to pay off the agreed-upon amount (often pennies on the dollar!). Many people have used a free sample debt settlement letter as seen below to tailor to their own situation and pay off debts such as: 

  • Credit Card debt
  • Medical Bills
  • Student Loans
  • Dental Bills
  • Store Credit Cards

Remember, the goal is to avoid getting into debt in the first place, but settling the debt with the company is preferable to bankruptcy.

If you are considering bankruptcy, the company would probably prefer to settle the debt instead, because they would at least get some of their money back. 

Below is the sample letter for your usage. Please consult your own financial adviser or attorney with any questions: 


123 Credit Card Company 
Any Street 
Any City, USA 11111 

Today’s Date 

Re: (Insert Your Credit Card Account Number/other Account Number) 

To Whom It May Concern: 

This letter is in regards to the above mentioned account. Unfortunately, I am currently experiencing some financial difficulties (briefly describe these difficulties) and find myself unable to keep up with my monthly payments. I have considered bankruptcy, but do not wish to file if at all possible. Instead, I would be interested in working out an alternate payment plan. 

I would like to recommend that you close my current account. I am also requesting that you waive the interest payments, and accept a payment of (50-70% less than your current balance/amount you owe). I would like us to agree on a new monthly payment of (you insert the amount), that I will be able to make. 

I would like to pay any creditors who are able to work with me. Please have someone contact me as soon as possible. If you are unable to agree to an alternate payment arrangement, I will be forced to default and file for bankruptcy. 

Thank you. 
Sincerely, 


When using or abridging this free sample debt settlement letter, remember that even debt settlement, though better than bankruptcystill affects your credit score. You will have debts listed as settled on your report, and if you have been late in the past in paying, that will also be listed. If you are able to settle your debts, however, you can regain a good credit score much faster than if you were to file for bankruptcy. Always remember to keep good records and copies of every letter you send out. 

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